TSX Ends Lower On Global Cues -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower for a second straight session on Tuesday, tracking declining global equity markets, as mining stocks plunged after copper prices dropped sharply amid a Chinese stock market tumble.

The decline was led by mining, materials, gold and energy sectors, due mainly to weakness in commodity prices.

The majority of the European markets ended in the red. Falling oil prices and the weak performance of the Chinese market weighed on investor sentiment. China's Shanghai Composite Index plunged 6.2 percent on the day amid concerns about economic growth.

Markets in the United States also ended in negative territory, with worries over China sending some upbeat housing starts data into insignificance. A disappointing earnings report from retail giant Wal-Mart has investors concerned, especially after the company reduced its full year forecast.

Investors are also playing it cautious ahead of the minutes from the most recent Federal Reserve meet on Wednesday. Traders will be looking for any clues that may indicate when the Fed plans to start hiking interest rates.

In some upbeat economic news, a Commerce Department report on Tuesday showed housing starts in the U.S. to have risen to a near eight-year high in July, while indicating a sharp drop in building permits.

The benchmark S&P/TSX Composite Index closed Tuesday at 14,198.65, down 52.88 points or 0.37 percent. The index scaled an intraday high of 14,227.44 and a low of 14,125.54.

On Monday, the index closed down 26.35 points or 0.18 percent, at 14,251.33. The index scaled an intraday high of 14,267.24 and a low of 14,184.58.

The Diversified Metals & Mining Index plunged 5.73 percent, as First Quantum Minerals (FM.TO) plummeted 9.45 percent, Teck Resources Limited (TCK-B.TO) tumbled 7.89 percent, and Lundin Mining Corp. (LUN.TO) dropped 2.04 percent.

HudBay Minerals Inc. (HBM.TO) fell 4.63 percent, while Sherritt International Corp. (S.TO) fell 5.36 percent.

Gold futures ended lower ahead of the minutes from two-day Federal Open Market Committee's July outcome even as the dollar trended higher.

The Gold Index dropped 1.69 percent, with gold for December delivery shedding $1.50 or 0.1 percent, to settle at $1,116.90 an ounce on the New York Mercantile Exchange Tuesday.

Among gold stocks, Kinross Gold Corp. (K.TO) fell 2.24 percent, Barrick Gold Corp. (ABX.TO) dropped 3.20 percent, Goldcorp Inc. (G.TO) shed 0.98 percent, Yamana Gold Inc. (YRI.TO) dived 5.28 percent, and Eldorado Gold (ELD.TO) moved up 0.18 percent.

The Capped Materials Index fell 1.69 percent, mainly on the strength of gold stocks. Agrium Inc. (AGU.TO) added 0.19 percent, while Agnico Eagle Mines Limited (AEM.TO) dropped 0.40 percent.

Potash Corp. of Saskatchewan Inc. (POT.TO) dropped 0.40 percent. K+S AG won a major supply deal for its Legacy mine in Canada. This could help the German company fend off an aggressive takeover offer from Canada's Potash Corp.

Crude oil futures ended higher ahead of the official weekly crude oil inventory report on Wednesday and some upbeat economic data from the U.S. with housing starts in July rising to an eight-year high.

The Energy Index shed 0.25 percent, with U.S. crude oil futures for September delivery, the most actively traded contract, jumping $0.75 or 1.8 percent, to settle at $42.62 a barrel on the New York Mercantile Exchange Tuesday.

Crescent Point Energy Corp. (CPG.TO) shed 3.31 percent, while Suncor Energy Inc. (SU.TO) dropped 0.63 percent. Encana Corp. (ECA.TO) gained 0.56 percent, Baytex Energy Corp. (BTE.TO) added 0.84 percent, and Canadian Natural Resources Limited (CNQ.TO) dipped 0.33 percent.

The heavyweight Financial Index dipped 0.05 percent, as National Bank of Canada (NA.TO) dropped 0.34 percent, Bank of Montreal (BMO.TO) dipped 0.12 percent, and Royal Bank of Canada (RY.TO) added 0.23 percent.

Toronto-Dominion Bank (TD.TO) gained 1.04 percent, Bank of Nova Scotia (BNS.TO) fell 0.92 percent, and Canadian Imperial Bank of Commerce (CM.TO) dipped 0.09 percent.

The Capped Health Care Index inched down 0.01 percent as Valeant Pharmaceuticals International, Inc. (VRX.TO) dropped 0.20 percent.

The Capped Information Technology Index declined 0.62 percent, as BlackBerry Limited (BB.TO) fell 1.00 percent.

The Capped Telecommunication Index gained 0.37 percent, as Rogers Communication (RCI-B.TO) added 0.82 percent, TELUS Corp. (T.TO) moved up 0.67 percent, and BCE Inc. (BCE.TO) gathered 0.22 percent.

The Capped Industrials Index fell 0.99 percent, even as Bombardier (BBD.B.TO) plunged 6.87 percent and Finning International Inc. (FTT.TO) dipped 1.35 percent.

Canadian Pacific Railway (CP.TO) shed 1.51 percent, while Canadian National Railway (CNR.TO) lost 0.75 percent. AutoCanada (ACQ.TO) is declining by 2.12 percent.

On the economic front, a Commerce Department report showed housing starts in the U.S. to have inched up 0.2 percent to an annual rate of 1.206 million in July from the revised June estimate of 1.204 million. Economists expected housing starts to climb to a rate of 1.180 million from the 1.174 million originally reported for the previous month.

Meanwhile, the report said building permits, an indicator of future housing demand, plunged 16.3 percent to an annual rate of 1.119 million in July after jumping to an eight-year high of 1.337 million in June. Building permits had been expected to pull back to a rate of 1.230 million from the 1.343 million originally reported for the previous month, reflecting an 8.4 percent decrease.

From Europe, the number of persons in employment in Germany increased further in the second quarter, but at a slower pace, preliminary figures from Destatis showed Tuesday. Total number of employed persons in the country rose 0.4 percent, or by 175,700 persons, to 42.8 million in the second quarter from the corresponding period last year. This was lower than the 0.6 percent hike logged in the first quarter.

U.K. consumer prices rose unexpectedly in July on smaller discounts on clothing prices during summer sales, while core inflation reached a five-month high, the Office for National Statistics revealed Tuesday. Consumer prices advanced 0.1 percent in July from last year, while they were expected to remain flat as seen in June.

House price inflation in the United Kingdom accelerated marginally in June, after remaining stable in the previous month, figures from the Office for National Statistics showed Tuesday. Average house prices rose 5.7 percent year-over-year in June, following a 5.6 percent increase in May, revised down from the 5.7 percent hike estimated earlier.